Revenue-Sharing Contract for Film Supply Chain with Promotion Effort
Date Issued
2016
Date
2016
Author(s)
Ho, Cheng-Che
Abstract
In film industry, the supply chain generally adopts multi-period revenuesharing contract that specifies how to split the box office between film distributors and exhibitors. We consider one distributor and one exhibitor in supply chain signing a two-period revenue-sharing contract under which the sharing ratio is adjusted periodically. The distributor provides a contract with specified revenue-sharing ratios in these two periods and then the exhibitor will decide the number of showing screens accordingly for each period. In the first period, both of them are uncertain about the potential box office of the movie, particularly high or low in our model. After the first period, the box office is realized and if it is low, the theater may adopt promotion activities to stimulate the box office, and also determines the number of showing screens in the second period. In this case, the distributor would determine the ratio of sharing the cost of the promotion effort with the theater. In this study, we build a two-period revenue-sharing model with effort and cost-sharing characterizing the film supply chain and obtain the analytical results. Then we conduct the numerical analysis to observe the strategy move of the distributor and the response action of the theater under various conditions.
Subjects
supply chain
film industry
revenue-sharing
promotion effort
Type
thesis
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ntu-105-R03546004-1.pdf
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